Wednesday, December 13, 2006

Power at Capacity


The nation's power grid is under strain. Like the nation’s highways and bridges, the network of transmission lines has not been maintained and expanded enough to meet growing demand. In areas where there are not enough lines to transmit electricity from the most efficient generating stations, utilities must find other sources. Sometimes they have to buy from costlier power plants nearby, like drivers forced by highway bottlenecks onto slower side roads. The result of course is higher prices.

1 comment:

Mr. Rood said...

But doesn't the article point out that competition leads to underserved area? If a company cannot make a profit it has no incentive to invest in capacity. qi